Build-A-Bear's CEO on Reinvention and Trump Tariffs

Ladies and gentlemen, let me tell you something: Build-A-Bear Workshop is not just a toy company; it's a story of reinvention and resilience. Sharon Price John, the CEO, has taken this beloved brand from the brink of extinction to the heights of profitability. Let's dive into how she did it and how they're navigating the choppy waters of Trump's tariffs.

First things first, Sharon Price John is a force to be reckoned with. She took the reins in 2013 when the company was bleeding money and struggling to stay relevant in the age of online shopping. But she didn't just patch up the wounds; she performed open-heart surgery on the brand. She transformed Build-A-Bear from a mall-based retailer into a multi-dimensional powerhouse. How did she do it? Let me break it down for you:

1. Digital Transformation: John recognized that the future was digital. She didn't just update the website; she reimagined the entire customer experience. Now, you can create your own "furry friend" online and have it shipped right to your doorstep. This move alone has expanded their customer base to include teens and adults who grew up with the brand.

2. Expanding the Addressable Market: John didn't stop at digital. She went after the "kidulting" market with licensed products from popular franchises like The Matrix, Gremlins, Deadpool, Friends, and even a Grogu soft toy based on the baby Yoda character from The Mandalorian. These products have been a massive hit, generating billions of impressions on social media. In fact, 40% of Build-A-Bear's sales now come from teens and adults. That's a game-changer!

3. Reimagining the Entertainment Division: John didn't just stop at toys. She reimagined the entire entertainment division, aligning it with the company's mission to "add a little more heart to life." This has led to record-breaking financial results and the highest profitability in the company's history.

Now, let's talk about the elephant in the room: Trump's tariffs. Build-A-Bear has been hit hard by these tariffs, but they've managed to mitigate the impact through some smart supply chain management. Here's what they've done:

1. Diversifying the Supply Chain: Build-A-Bear has been working with partners to diversify its supply chain and expand its factory base since Trump's first term. This year, less than 50% of their U.S. inventory is expected to be shipped from China. That's a significant reduction and a smart move.

2. Expanding the Factory Base: By expanding their factory base, Build-A-Bear has been able to manage costs more effectively and reduce their reliance on a single source for their products. This has helped them to be more efficient in the face of tariffs.

But let's not forget, these strategies come with their own set of challenges. Managing a more diversified supply chain requires significant investment in technology and infrastructure. Expanding the factory base can be costly and time-consuming. But Build-A-Bear is up for the challenge. They've shown time and time again that they can adapt and thrive in the face of adversity.



So, what's the bottom line? Build-A-Bear Workshop is a company on the move. They've reinvented themselves under the leadership of Sharon Price John, and they're navigating the challenges of Trump's tariffs with smart strategies. If you're looking for a company that's not just surviving but thriving in today's market, look no further than Build-A-Bear. This is a no-brainer!